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Dangers of selling unlicensed hosting

Started by fitriulina, May 13, 2023, 12:01 AM

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fitriulinaTopic starter

Greetings, my friend.

Let me begin by asking if it's possible for an individual entrepreneur to officially obtain a telematics communication services license to sell virtual hosting, particularly if Hetzner has servers in Europe?

Now, let me explain how we encountered this issue to those who are interested. Our small web studio keeps our servers at Hetzner, which we are quite satisfied with due to their reasonable pricing, quality and infrastructure. We develop projects on our servers and once completed, we send the customers on their own voyage to a separate hosting. However, our customers don't want to leave us, preferring the speed and stability of the site on our server despite the 40-50 €/month cost for their own server, which they also struggle to administer.

As a result, the customers remain on our servers and pay us a symbolic fee of 500 rubles a month, which we label in our contracts and invoices as "technical support of the site", even though in reality, it functions as a form of virtual hosting.

I fear that one day we may get into trouble for illegally selling hosting without a proper license.
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cardaddy

there is no correlation between the availability of licenses and connection, and our location is not in Chicago. Additionally, the legal concept of "hosting" does not exist in our legislation, whereas "telematics services" require a communication node that connects various SORMS elements. Unless the invoice or contract specifically mentions "telematics services", it would be challenging to prove that technical support, including the placement of customer sites abroad, constitutes the provision of such services without a license. However, the amounts involved are not significant, and there is no need for concern.

It's essential to be aware of the legal intricacies surrounding telematics services and hosting. Even minor misunderstandings can lead to significant financial losses and legal complications. Therefore, it's crucial to have a thorough understanding of the relevant laws and regulations before engaging in any business activities related to these services.
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TireardkarryJet

Your approach to the problem was, in fact, similar to the solution we came up with.
Our contract includes a service for finding and purchasing hosting with specific parameters, as well as an optional configuration and administration service, all at our expense.

Not only do we adhere to the terms of the contract, but we also ensure that the server is obtained from Hetzner and configured on VDS / wirth.hosting.
It is important that there is no mention in the contract that you are responsible for telematics services, and it would be ideal to disclaim any responsibility for such services altogether.
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DanielFitzherbert

Given the situation you've described, it's important to delve into the specific regulations governing telematics communication services and virtual hosting in the European Union.

When it comes to offering telematics communication services, including virtual hosting, in the EU, you typically need to obtain a license from the national regulatory authority of the country where the services are being provided. The licensing requirements and regulatory framework can differ from one EU member state to another, and it's essential to understand the specific rules and procedures that apply to your operations.

In the case of Hetzner, a well-established hosting provider with servers in Europe, they are likely to be well-versed in the legal and regulatory requirements for offering hosting services. Given your satisfaction with their services, it may be worthwhile to engage in a dialogue with Hetzner to gain insights into the regulatory environment and understand their perspective on compliance with telematics communication services regulations.
Seeking guidance from legal experts or regulatory compliance professionals who specialize in telecommunications and hosting regulations in the EU can provide invaluable clarity. These professionals can help you navigate the intricacies of the regulatory landscape, assess the specific licensing requirements in the jurisdictions where your clients are located, and ensure that your business aligns with the applicable legal frameworks.

Considering the potential risks associated with operating without the necessary licenses for providing hosting services, it's crucial to proactively address this issue. By taking proactive steps to comply with the regulatory framework, you not only mitigate legal risks but also demonstrate a commitment to ethical and lawful business practices. This, in turn, can bolster trust and confidence in the services you offer to your clients.
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Mike5

The real crime here is charging your clients peanuts for premium hosting! If you're providing top-notch service, charge what you're worth. As for the license, do you really want to be another cog in the regulatory machine? Rebel a little, it's good for the soul.
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kidscastle

Selling unlicensed hosting can lead to legal penalties, loss of credibility, customer data breaches and potential business shutdown. This is due to non-compliance with software, security and regulatory standards.
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Fitfuturegroup

Selling unlicensed hosting can lead to legal action, fines, loss of credibility, client data risks, and service shutdowns seriously damaging your reputation and business in the long term.
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kavyapharma

It is possible to face legal issues, security risks, data breaches, and loss of customer trust if you sell unlicensed hosting. There may be heavy penalties or the closure of the business as a result of it damaging credibility.
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